TOKYO –
Japan and the United States conducted coordinated yen-buying intervention in the foreign exchange market to curb the currency’s excessive decline, with Finance Minister Satsuki Katayama expected to announce the move on August 3, according to people familiar with the matter.
Government and financial sources said the two countries jointly purchased yen in the New York foreign exchange market on July 31, pushing the currency as high as the lower 157 yen range against the dollar.
The yen had earlier weakened to nearly 164 against the dollar. On the night of July 30, the Japanese government and the Bank of Japan intervened in the market by buying yen and selling dollars.
U.S. Treasury Secretary Scott Bessent was also seen with a memo on his desk during a Cabinet meeting on July 31 stating that the United States would purchase between $5 billion and $10 billion worth of yen.
The coordinated yen-buying operation was the first by Japan and the United States since the financial crisis of 1998, 28 years ago. Katayama is expected to explain the series of measures taken to correct the yen’s excessive weakness to reporters on August 3.
Source: TBS
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